MPs calling for energy mis-selling compensation payouts

25 July 2011

If you’ve switched your energy supplier as a result of some smooth-chatting, lanyard-sporting greaseball knocking on your door, chances are you didn’t actually get a better deal – but help may be at hand thanks to a gang of crimebusting MPs.

The Energy and Climate Change Committee has recommended that energy companies should compensate punters who have been mis-sold on the doorstep, claiming that as many as 40% of those who fall for such deals end up worse off.

Doorstep_203x150 The Committee are also worried that vulnerable energy-users are targeted with once company saying that 70% of pre-payment customers who had switched had been persuaded to do so on their own doorstep. If you ask us, it’s more or less the same as burglary.

Other bodies, such as Consumer Focus are also calling for more regulation and less daylight robbery, and the onus is now very much on industry regulator Ofgem to get a tighter grip on the way the industry is ran.

Back in May, Scottish & Southern Energy (SSE) was fined after its salesmen were found guilty of using deliberately misleading sales material. SSE agreed earlier this month to close down its doorstep sales force following the conviction, which was brought by Surrey Trading Standards.

If you feel as though you could be vulnerable against these cold-calling sellers, you might want to invest in a ‘No Cold Callers’ door or window sticker – they’re under instructions to leave you alone if you’ve got one of those.

If you are tempted by a doorstep deal, the salesgoon is obliged to leave you a written quote, highlighting any potential savings that you’ll get if you switch to their service. Make sure you get one of these and hang on to it in case it later turns out that you’ve been misled.

Also, if you’ve got evidence that you might have been mis-sold in the past, you might want to start gathering together evidence – if the MPs get their way, there could be some compensation payouts coming over the horizon.

TOPICS:   Utilities

2 comments

  • Tim
    Remember having a long argument with an npower salesman who couldn't understand why I didn't want to save money, despite no analysis of my existing tariff and personal usage, no guarantee their deal will remain better (though he couldn't prove it was better anyway), my insistence that a couple of quid saving is not enough to make me change to a company I've only heard terrible things about, that I'll look into it myself and that I don't deal with doorstep salesmen anyway.
  • Louise S.
    I have been mis sold by EDF truely enough. I was originally with Scottish Power in alot of credit only paying £37.00 per month economy 7 electic only. And an EDF salesman came to my door sugesting me to switch to them. Now I end up paying £58.00 per month in alot of debt as if they have over charged me from the start as the scottish Power account was closed and the EDF account opened. There feels to be hidden charges which is nothing in what I have used in energy.

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